Case Study Anaalysis: TESCO

Introduction:

This case talks about Britain’s leading food retail group Tesco with its presence in Europe and Asia has also been a pioneer online. Products line of Tesco includes various non-food ranges (for example, books, DVDs and electrical items under the. 'Extra' banner), Tesco Personal Finance and the telecoms businesses, as well as services offered in partnership with specialist companies, such as dieting clubs; flights and holidays, music downloads, gas, electricity and DVD rentals.

Analysis of Case:
1.Tesco been a pioneer online because of that its sales increases year-on-year by 31 %, and profit increased by 37% to £21 million. It receives 170,000 orders each week. Soon it should reach an annual turnover of. £1 billion online and it is generally accepted as the world's largest
2.Tesco leads the UK's other leading grocery retailers in terms of market share because the reason is only other competitors are offline retailers
As with other online retailers, Tesco.com relies on in-store advertising and marketing to the supermarket's Club card loyalty scheme’s customer base to convince customers to shop online. However, for non-food goods the supermarket does advertise online using keyword targeted ads. For existing customers, e-mail marketing and direct mail marketing to provide special offers and promotions to customers important
Tesco then uses automated event-triggered messaging to encourage continued purchase. For example, Tesco.com has a touch strategy which includes a sequence of follow-up communication triggered after different events in the customer lifecycle
Trigger event· 1: Customer first registers on site (but' does not buy)
Trigger event 2: Customer first purchases online
Trigger event 3: Customer does not purchase for an extended period
5. Tesco's online product strategy intangible offerings, such as e-diets and music downloads and also focused on improving the customer experience online -the time it takes for a new customer to complete their first order has been decreased from over an hour to 35 minutes through usability work culminating in a major site revision
6.Wade-Gery's strategy was 'to make home delivery part of the DNA of Tesco' according to NMA (2005c) and also extending home-delivery services to the likes of bulk wine and white goods
For creating synergy they did many alliance
Tesco is built on a core premise of convenience and value and Wade-Gery believes what it's already done with mobile tariffs, broadband packages and music downloads are good

Case Study Analysis: Napster Changes The Music Marketing Mix

About Napster:

Napster was initially created in 1998-1999 as a peer-to-peer music downloading program for college students. However, on March 5, 2001 Napster was ordered by the U.S. court to stop trading copyrighted material. The following Year Napster filed for bankruptcy and was bought out by Roxio, Inc. Napster has since reopened its online doors for business. It now does business in Canada, the U.S. and the United Kingdom, has 410,000 customers, each of which pay ₤14.95 per month to get the right of use to 1.5 million songs. With the increases in technology, Napster has had to focus on new ways to attract customers and keep up with its competitors such as Apple. Because of this fast moving environment, the company has strategically varied its marketing mix to place itself in a position of growth.

The objective of Napster is “to continue to build the Napster consumer brand – as well as increase awareness of the Napster brand identity. Napster has a reputation as an all you can eat music service which is fun and affordable. These branding characteristics assist customers in recognizing Napster over other music retailers. Napster provides value to customers who want their music and electronic devices to be compatible. It provides a list of all devices compatible with its services on the company website.

Product of company:

Napster’s core product is music. The company offers unlimited access to 1.5 million songs to subscribers at a fixed price per month. It also offers mass customization through radio stations based on particular artists and recent consumer downloads, along with a page that lists recommendations from Napster. These additional features (part of Napster’s extended product) give the company an edge over competitors who only offer music downloads.

Price:
Napster offers a different pricing model than its competitors. Apple and other competitors allow “users to purchase songs on a per-track basis or in the form of albums”.Napster on the other hand offers simplicity with a monthly fee that allows users to download as many tracks as they can. There are many different ways that a customer can pay Napster for its service. Napster’s payments are made in advance “via credit card, online payment systems or redemption of pre-paid cards, gift certificates, or promotional codes”
Place:
Napster carries out all of its business online. The strategy of Napster is to become the leading global provider of consumer digital music services.
Promotion:

One way Napster promotes itself is through strategic partnerships. One of the company’s four key focuses is to continue to pursue and execute strategic partnerships. Napster believes that they must maintain and add to their strategic marketing relationships in order to be successful. Napster has entered into strategic partnerships online as well as offline. Some of the partnerships include Microsoft, Best Buy, Blockbuster and Target. Napster is able to use these partnerships to be innovative by investing in the new services and technologies that these companies develop.
These partnerships separate it from its competitors such as Apple. Apple in a way ocks people into purchasing Apple hardware because its services are only compatible with its own products . Because of its partnerships Napster is able to bundle its services with hardware manufacturers by creating a more widespread marketing campaign. The partnerships Napster has entered into help ensure that its services are compatible with the newest technology on the market. Napster also participates in traditional offline and online marketing. Napster markets offline with television, radio and print advertisements. The company’s online advertising consists of placing advertisements on a number of websites (including affiliate partners) and search engine. Both of these forms of advertising follow the company’s mission of marketing “directly to customers through an integrated offline and online marketing.
People:
Napster offers its services to anyone within the region that it operates in.Napster executives also stated that subscribers bought more music online than folk who buy one-off downloads and one in five of them no longer buy CD’s. This shows that their strategy of a once a month payment helps retain more customers than their competitors, who offer a pay as you go rate.
Process:

Napster does not directly participate in new product development since it does not sell products that it can develop. However, it is focused on being innovative with its file formats by investing in new services and technologies to encourage a wide range of platforms from portable MP3 players, PC’s cars, mobile phones, etc. This ensures that Napster will continue to be competitive because it is constantly in the growth stage of the product life cycle.
Physical Evidence:

Napster provides a unique online experience to its customers. The web site is tailored to making the customer’s experience easy and free of stress. Napster’s once a month payment to gain unlimited music downloading access, saves the user a lot of time and stress by eliminating a payment each time a purchase is made. The actual website of Napster is extremely easy to navigate through. The top of the page includes a list of tabs that helps the customer find their way around the site. This list of tabs prevents the customer from searching all over the site to find what they are looking for.Napster has a high-quality selection of features available. These features include Napster recommendations, Napster radio based around songs by particular artists, Napster radio playlists based on the songs you have downloaded and swapping playlists and recommendations with other users. These features, which are only available to subscribers, provide a personal touch and help the customer easily connect with his or her interests.

7P's Analysis of Burger king

Product - It must provide value to a customer but does not have to be tangible at the same time. Basically, it involves introducing new products or improvising the existing products.
Price - Pricing must be competitive and must entail profit. The pricing strategy can comprise discounts, offers and the like.
Place - It refers to the place where the customers can buy the product and how the product reaches out to that place. This is done through different channels, like Internet, wholesalers and retailers.
Promotion - It includes the various ways of communicating to the customers of what the company has to offer. It is about communicating about the benefits of using a particular product or service rather than just talking about its features.
People - People refer to the customers, employees, management and everybody else involved in it. It is essential for everyone to realize that the reputation of the brand that you are involved with is in the people's hands.
Process - It refers to the methods and process of providing a service and is hence essential to have a thorough knowledge on whether the services are helpful to the customers, if they are provided in time, if the customers are informed in hand about the services and many such things.
Physical (evidence) - It refers to the experience of using a product or service. When a service goes out to the customer, it is essential that you help him see what he is buying or not. For example- brochures, pamphlets etc serve this purpose.
To understand this concept better let's analyse 7 Ps of Burger King-

1 P: Product:

Veg MenusBeveragesNon- Veg MenusFrozen Desserts

•Cares for customer ‘s Sentiments towards religion and culture.

• It has separate cooking area and equipments.

•Takes dietary concern-Burger king Healthier kids club.
2P-Price
•Policy which caters to Indian customers.
•Quite affordable products.

•Importance to Brand and its integrity
3P-Place

•Located at prime locations.

•Every spread in NCR.

•Almost in all big cities.

•At residential areas , malls.

4p-promotion

•Target customer- Children.

•Awareness about products among people by using different Media like TVs, Hoarding, and Bus Shelters.

•Description of product on paper nuts placed in the trays.

•The placing of the pamphlets and banners in all around the outlets.

•Lucky promotion strategies .

5P-People

•Each outlet is headed by a Restaurant Manager . He is responsible for the daily operation and customer interaction.

•Delivery Crew Member carries basic operation of a restaurant. Ensures customer satisfaction at the restaurants.

•In order to motivate there employees they give them stars as per their performance.

6P-Physical evidence

•The physical evidence appearance affects not only the impression outsiders have of a business but all the way that business functions.

•Staff members.

•Location & appearance.

•Buildings Maintence

7P-Process

•Food manufacturing transparent to customers.

•Training to the licensees.

•Invented the most efficient cooking equipment.

•New methods of food packaging and distribution.

•Burger King in India followed the same tradition. Spent Rs. 30 crores on market research.

The way which I follow...

DESERVE BEFORE DESIRE...